We are registering our company for retail and wholesale two and three-wheeler spares shops and will be operating from multiple locations in Tamil Nadu. We are hiring salesmen and need to fix a salary for our employees. Since it is a startup, we need to set a fair salary for employees and consider the company benefits as well.
Tamil Nadu Minimum Wage In rupees per day w.e.f April 1, 2016, to March 31, 2017:
- Scheduled Employment: Shops and Commercial Establishments
- Basic Minimum Wages: 78.88
- V.D.A.: 143.35
- Total Minimum Wages: 222.23
1. How to fix the fair salary for salesmen and avoid any legal issues?
2. For the suggested salary from question 1, how to create a salary structure where there will be mutual benefits for employees and the company? Design a salary structure where the base salary should be very less, and incentives (including attendance allowance, food allowance, performance allowance, and transport allowance, etc.) are emphasized.
Regards,
Pharthiphan
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Tamil Nadu Minimum Wage In rupees per day w.e.f April 1, 2016, to March 31, 2017:
- Scheduled Employment: Shops and Commercial Establishments
- Basic Minimum Wages: 78.88
- V.D.A.: 143.35
- Total Minimum Wages: 222.23
1. How to fix the fair salary for salesmen and avoid any legal issues?
2. For the suggested salary from question 1, how to create a salary structure where there will be mutual benefits for employees and the company? Design a salary structure where the base salary should be very less, and incentives (including attendance allowance, food allowance, performance allowance, and transport allowance, etc.) are emphasized.
Regards,
Pharthiphan
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I did some research and created a salary structure, request you to let me know the flaws and suggest me a perfect salary structure.
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Dear All, response would be of a great help.I believe I am at the right place seeking for help. Regards, Pharthiphan
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I did some research and created a salary structure myself. I request you to let me know the flaws and suggest a perfect salary structure. Your response would be of great help. I believe I am in the right place seeking help.
Regards,
Pharthiphan
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Regards,
Pharthiphan
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Dear Pharthiphan,
In my opinion, it would be better if you fix the basic as a minimum basic & da of the State. There are States in India where HRA is governed by State Acts, for example, West Bengal (Minimum HRA 5% of Basic & DA). I have no idea about your State, so please check. The basic structure may taper off - the higher the monthly gross salary, the lower the basic % of monthly gross should be, but at a higher level, it may be a minimum of 30% of the monthly gross. At a lower level, there is no need to include perks like conveyance, medical, etc., in the pay structure as the yearly earnings are not taxable. At a lower level, there may be two components: Basic & HRA. As the monthly gross increases, you should consider adding components like conveyance, medical, LTA, etc., for income tax savings. The PF authority usually suggests fixing the basic at a lower level, at least 50% of the monthly gross up to 15,000/- basic (statutory limit). There are case laws regarding the bifurcation of minimum wages, but in that scenario, the monthly gross salary should not be less than the minimum wages.
Salary structures usually vary from organization to organization depending on the nature of the business, prevailing market rates, minimum wages, and statutory costs such as PF, ESI, Bonus, etc. There is no fixed formula to determine the salary structure. If you need any further clarification, please contact me.
S K Bandyopadhyay
USD HR Solutions
+9198310 81531
skb@usdhrs.in
Home
From India, New Delhi
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409In my opinion, it would be better if you fix the basic as a minimum basic & da of the State. There are States in India where HRA is governed by State Acts, for example, West Bengal (Minimum HRA 5% of Basic & DA). I have no idea about your State, so please check. The basic structure may taper off - the higher the monthly gross salary, the lower the basic % of monthly gross should be, but at a higher level, it may be a minimum of 30% of the monthly gross. At a lower level, there is no need to include perks like conveyance, medical, etc., in the pay structure as the yearly earnings are not taxable. At a lower level, there may be two components: Basic & HRA. As the monthly gross increases, you should consider adding components like conveyance, medical, LTA, etc., for income tax savings. The PF authority usually suggests fixing the basic at a lower level, at least 50% of the monthly gross up to 15,000/- basic (statutory limit). There are case laws regarding the bifurcation of minimum wages, but in that scenario, the monthly gross salary should not be less than the minimum wages.
Salary structures usually vary from organization to organization depending on the nature of the business, prevailing market rates, minimum wages, and statutory costs such as PF, ESI, Bonus, etc. There is no fixed formula to determine the salary structure. If you need any further clarification, please contact me.
S K Bandyopadhyay
USD HR Solutions
+9198310 81531
skb@usdhrs.in
Home
From India, New Delhi
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Hi, I am working as a "Field Executive". I want to know the exact salary structure of Karnataka. The number of working days is 30 days, and the take-home salary is 20000. This means, what will be the percentages of the following components:
- BASIC SALARY
- CONVEYANCE
- DEPUTATION ALLOWANCE (DA)
- HOUSE RENT ALLOWANCE
- MEDICAL ALLOWANCE
- STATUTORY BONUS RECURRING
- PERSONAL TAX
- ESI.
From India, Bengaluru
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- BASIC SALARY
- CONVEYANCE
- DEPUTATION ALLOWANCE (DA)
- HOUSE RENT ALLOWANCE
- MEDICAL ALLOWANCE
- STATUTORY BONUS RECURRING
- PERSONAL TAX
- ESI.
From India, Bengaluru
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Salary-Note.doc
SALARY SHEET CALCULATION.xls